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(1)Where, at or before the time when any proposals are submitted to the Secretary of State under section 41(1), an application is duly made to the Secretary of State with respect to the school to which the proposals relate, he may (subject to the following provisions of this section) by order direct—
(a)that the school shall be a controlled school; or
(b)that the school shall be an aided school.
(2)Where on an application for an order under subsection (1)(b) the Secretary of State is satisfied that the governing body of the school will be able and willing, with the assistance of grants under section 65, to defray the expenses that would fall to be borne by them by virtue of section 59(2) and (3) as the governing body of an aided school, he shall make an order directing that the school shall be an aided school.
(3)Where on an application for an order under subsection (1)(b)—
(a)the Secretary of State is not satisfied that the governing body will be able to defray those expenses without the assistance of both—
(i)grants under section 65, and
(ii)a loan under section 67, and
(b)it appears to him that the area to be served by the school will not be also served by a county or controlled school,
he shall comply with subsection (4) before determining the application.
(4)The Secretary of State—
(a)shall consult such persons or bodies of persons as appear to him to be representative of any religion or religious denomination which, in his opinion having regard to the circumstances of the area, is likely to be concerned, and
(b)unless he is satisfied after that consultation that the holding of a local inquiry is unnecessary, cause such an inquiry to be held.
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